NETGEAR (NASDAQ:NTGR) Stock Price Down 5.4% - What's Next?

Key Points

• NETGEAR shares fell 5.4% to about $21.66, while trading volume dropped 84% below the average daily level.
• Analyst sentiment remains mixed, with an overall “Hold” rating and an average price target of $36.50; ratings include two Buys, one Hold and one Sell.
• The company recently beat quarterly earnings and revenue estimates, but revenue declined 1.2% year over year and analysts expect a full-year loss of $0.52 per share.

NETGEAR, Inc. (NASDAQ:NTGR - Get Free Report) traded down 5.4% on Friday . The company traded as low as $21.71 and last traded at $21.6590. Approximately 73,431 shares traded hands during trading, a decline of 84% from the average daily volume of 449,207 shares. The stock had previously closed at $22.90.

Wall Street Analyst Weigh In

NTGR has been the subject of a number of recent research reports. Wall Street Zen raised NETGEAR from a "sell" rating to a "hold" rating in a report on Sunday, September 6th. Weiss Ratings reiterated a "sell (d)" rating on shares of NETGEAR in a research report on Wednesday, June 24th. Two investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $36.50.

NETGEAR Price Performance

The business's 50 day moving average price is $22.69 and its 200-day moving average price is $23.44. The company has a market cap of $577.85 million, a P/E ratio of -22.87 and a beta of 1.17.

NETGEAR (NASDAQ:NTGR - Get Free Report) last announced its earnings results on Thursday, August 6th. The communications equipment provider reported $0.16 EPS for the quarter, topping the consensus estimate of $0.01 by $0.15. The company had revenue of $168.56 million for the quarter, compared to analysts' expectations of $157.80 million. NETGEAR had a negative return on equity of 2.79% and a negative net margin of 3.71%.The business's revenue for the quarter was down 1.2% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.06 earnings per share. As a group, research analysts forecast that NETGEAR, Inc. will post -0.52 EPS for the current year.

Insider Activity

In other NETGEAR news, insider Pramod Badjate sold 3,000 shares of the firm's stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $23.88, for a total transaction of $71,640.00. Following the sale, the insider directly owned 154,073 shares in the company, valued at approximately $3,679,263.24. This trade represents a 1.91% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Corporate insiders own 3.10% of the company's stock.

Institutional Investors Weigh In On NETGEAR

Several large investors have recently made changes to their positions in the stock. Northwestern Mutual Wealth Management Co. raised its position in shares of NETGEAR by 8.2% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 7,699 shares of the communications equipment provider's stock valued at $180,000 after purchasing an additional 581 shares during the period. Cetera Investment Advisers grew its stake in NETGEAR by 6.4% in the 1st quarter. Cetera Investment Advisers now owns 11,996 shares of the communications equipment provider's stock valued at $262,000 after buying an additional 725 shares during the last quarter. Continuum Advisory LLC acquired a new stake in NETGEAR during the second quarter worth approximately $25,000. Integrated Wealth Concepts LLC acquired a new position in shares of NETGEAR in the second quarter valued at approximately $31,000. Finally, IFP Advisors Inc increased its stake in shares of NETGEAR by 161.7% during the fourth quarter. IFP Advisors Inc now owns 2,243 shares of the communications equipment provider's stock worth $55,000 after purchasing an additional 1,386 shares during the period. Institutional investors own 82.97% of the company's stock.

NETGEAR Company Profile

NETGEAR, Inc NASDAQ: NTGR develops and markets networking products and related services for consumers, businesses and service providers. Its portfolio includes wireless routers, mesh Wi-Fi systems, cable and cellular gateways, switches, wireless access points, network storage products and security cameras.

The company offers consumer-focused product lines such as Nighthawk and Orbi, as well as business networking solutions marketed under brands including NETGEAR Business and Insight.

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